Testing times for Black
Thursday 11 May 1995
Pre-tax profits were £16.2m, compared with £16m a year earlier. Operating profits fell to £4.5m from £12.1m, reflecting the newspaper cover-price war and rising newsprint costs.
The results were at the low end of analysts' estimates, and the shares lost 4p to close at 449p.
The decline also reflected doubts about a planned restructuring of Telegraph by 58.5 per cent owner Hollinger, the holding company of Canadian media baron Conrad Black.
The restructuring, announced in February, would include an offer by Hollinger's US subsidiary, American Publishing, to buy out Telegraph's minority shareholders. To date, however, Hollinger has refused to reveal details, as it attempts to set an offer price acceptable to independent committees at Telegraph and American Publishing.
Commenting on the results, Stephen Grabiner, Telegraph's managing director, said profits had suffered since the Telegraph joined the cover price war last spring, but said the company had no intention of raising prices before the competition. Rupert Murdoch's News International, publisher of the Times and the Sunday Times, is Telegraph's main threat, Mr Grabiner conceded.
"Mr Murdoch is trying to undermine the strength of our franchise, and we will do everything to protect it," he said. Advertising revenues were 8 per cent ahead of last year, largely on the strength of classifieds.
A 20 per cent stake in John Fairfax Holdings, the Australian media company that publishes the Sydney Morning Herald, helped push up Telegraph profits before tax and extraordinary items to £10.5m.
Fairfax, announcing nine-month results yesterday, posted operating profits of A$161.6m (£74.8m), 34 per cent higher than a year earlier.
Both Fairfax and Telegraph warned that further increases in the price of newsprint would affect earnings. Mr Grabiner said he expected two further price rises before the market begins to stabilise in 1996.
- 2 Tom Cruise: Reporters banned from asking actor about Scientology
- 4 Dutch King Willem-Alexander declares the end of the welfare state
- 5 Giant Minion terrorises drivers in Ireland as 40ft inflatable blocks traffic on Dublin road
Edward Heath 'raped 12 year-old boy at Mayfair flat'
Sabrina Corgatelli: US hunting tourist posts picture of herself with dead giraffe after Cecil the lion outrage
'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
Labour leadership race: Jeremy Corbyn could be the next Prime Minister, says Ken Clarke
Tom Cruise: Reporters banned from asking actor about Scientology
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Calais crisis: The seven claims made about the migrants - and the reality
iJobs Money & Business
£35000 - £37000 per annum + benefits: Ashdown Group: Contracts Executive - Cit...
£20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...
£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
Up to 70k DOE: Guru Careers: We are seeking an experienced Financial Director ...